BY THE NUMBERS
U.S. stock futures dropped Tuesday, with the Nasdaq indicated down 2%, one day after a stunning market turnaround. The Nasdaq was down as much as 4.9% on Monday before mounting a startling comeback to close up 0.6%. However, the tech-heavy index was still firmly in a correction, down 13.7% from its record close in November. (CNBC)
* Long-term investors shouldn’t worry too much about stocks 10% off their highs (CNBC)
* Investors fear 'crypto winter' ahead as bitcoin falls 50% from record highs (CNBC)
Down 1,115 points, or 3.25%, at Monday's lows, the Dow ended up 0.3%. The 30-stock average was 6.6% below its record close earlier this month. The S&P 500 also closed up 0.3% after being down nearly 4% at one stage Monday, briefing entering correction territory, off more than 10% from its record close to start the new year. (CNBC)
Bond yields moved higher Tuesday as the Federal Reserve was set to begin its two-day January meeting. The Fed's policy statement and Chairman Jerome Powell's news conference Wednesday afternoon are expected to reflect a willingness on the part of the central bank to take the steps necessary to fight inflation. (CNBC)
IN THE NEWS TODAY
Pfizer (PFE) and BioNTech (BNTX) on Tuesday launched a clinical study to evaluate the safety and effectiveness of a vaccine that targets the Covid omicron variant, as concerns grow that the current shots aren't holding up against infections and mild illness caused by the strain discovered just over two months ago. (CNBC)
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Four Dow stocks are reporting quarterly results Tuesday before the bell: 3M, American Express, Verizon and Johnson & Johnson (JNJ). J&J slightly beat estimates with adjusted fourth-quarter earnings but missed on revenue. However, the American drugmaker guided higher for full-year 2022 sales and adjusted per-share earnings. J&J expects its Covid vaccine to generate $3 billion to $3.5 billion in sales this year. Shares fell 1.8% in the premarket. (CNBC)
Dow stock Microsoft is set to deliver quarterly earnings after the bell. IBM, also a Dow component, Monday evening reported better-than-expected adjusted earnings and revenue for the fourth quarter. The stock rose almost 2% in Tuesday's premarket, giving up the bulk of a 6% gain in after-hours trading as the tech giant declined to provide forward earnings guidance. Intel and Apple report quarterly results Wednesday and Thursday, respectively. (CNBC)
Crisis talks aimed at averting a military confrontation between Russia and Ukraine appear to be faltering, as the U.S. Western allies prepare for a possible conflict between the neighbors that could be as U.K. Prime Minister Boris Johnson puts it, "painful, violent and bloody." The U.S. Defense Department has put 8,500 troops on alert. (CNBC)
House Republican leaders, including Minority Leader Kevin McCarthy, R-Calif., have privately discussed ways they can campaign during the midterm election on the issue of limiting lawmakers' stock trading, an attempt to seize on one of the hot-button issues in Washington. (CNBC)
Sony Music Entertainment has acquired the entire recorded music catalog of Bob Dylan, the company announced Monday. The deal, which closed back in July and estimated to be worth as much as $200 million, includes all of the famed singer's previous albums dating back to 1962 as well as the rights to multiple future releases. (CNBC)
* Neil Young wants Spotify to pull his music due to Joe Rogan's vaccine misinformation on platform (USA Today)
STOCKS TO WATCH
3M (MMM) rose 1.9% in the premarket after reporting quarterly earnings of $2.31 per share, 30 cents a share above estimates. Revenue also topped estimates, and 3M said its business improved during December as supply chain issues, omicron and other concerns abated.
* Verizon beats earnings expectations, gives upbeat outlook (MarketWatch)
Record card spending helped American Express (AXP) report better-than-expected profit and revenue for the fourth quarter. Earnings came in at $2.18 per share, well above the $1.87 a share consensus estimate.
General Electric (GE) slid 2.8% in premarket action as fourth-quarter revenue fell below Street forecasts. Quarterly earnings came in at 92 cents a share, compared to a consensus estimate of 85 cents a share. The company also forecast improved cash flow for 2022.
Ericsson (ERIC) – Ericsson reported better-than-expected quarterly earnings, with the Swedish telecom equipment maker benefiting from the accelerating rollout of 5G networks around the world. Shares surged 5.5% in the premarket.
Logitech (LOGI) sales fell 2% for its latest quarter, with the maker of computer peripheral equipment facing tough comparisons to elevated pandemic-induced demand a year ago. Logitech raised its sales forecast for the current quarter, however, and its shares jumped 4.5% in premarket trading.
PetMed Express (PETS) fell 9 cents a share shy of consensus estimates, with quarterly profit of 21 cents per share. The pet products seller's revenue also came in short of analysts' forecasts. The stock dropped 2.7% in the premarket.
Allscripts Healthcare Solutions (MDRX) issued preliminary quarterly earnings and revenue numbers that exceeded Wall Street forecasts. The provider of physician practice management technology also announced a new $250 million share repurchase program. The stock surged 8.6% in premarket action.